"There is a crisis that has been going on for almost a year," Mr Steinitz told Israel Radio.

"There is no doubt that relationship with the United States is critical to Israel. But, with all the enormous importance of US diplomatic, economic and military help, Israel must keep its independence and also some reciprocity in this relationship," he added.

"This is an illegitimate demand which also has an aspect of humiliation to it," he said. "We cannot agree to everything."